New Delhi, Nov 21: The Delhi High Court today stayed Xerox Modicorp Ltd (XML) from including the issue of appointment of additional director of the company in the agenda of its board of directors' meeting in London scheduled for this afternoon. The order to this effect was passed by Justice C K Mahajan on a petition filed by Emco Finvest Ltd contending that the inclusion of appointment of additional director in the agenda was illegal as Xerox already has its full quota of six nominee directors on the Xerox Modicorp board.


Emco Finvest, Spicecorp Pvt Ltd along with Modifin Pvt Ltd and Modis (B K Modi and Dilip Modi) had entered into a shareholders agreement with Xerox corporation and Xerox Ltd for the purpose of running XML, a joint venture company.

Contending that according to the agreement, Modis have the right to nominate three directors and Xerox can nominate six, the petitioners submitted that the proposed appointment would exceed the maximum number of Xerox nominees in the board of XML.
The petitioner's counsel said the company failed to appoint the nominee director of Modis, who was nominated in July this year for the appointment of additional director.

Bureau Report